Small Things Inc. (STI) currently has a bond issue outstanding with 7 years to maturity a face value of $1,000 and a coupon rate of 9.00% (paid semi-annually). The bond currently sells for $1,035.00. STI's common stock has a beta of 1.6, and currently sells for $58/share. Treasury bills yield 2.30% and the expected rate of return on the market is 9%. STI's marginal tax rate is 20% and their total bond debt has a face value of $7,000,000 and there are 600,000 shares outstanding.

Part A) Estimate STI's nominal pre-tax cost of debt. (4 decimals)

Part B) Estimate STI's cost of equity (to four decimals).

Part C) What is STI's WACC?

Part D)

If STI has a project that costs $2,700,000 today and will return a one-time cash flow of $3,400,000 in 1 year(s). If this project is the same risk as the firm's existing assets, what is the project NPV?